The IPO of Burger King India is coming on 2 December. After negotiating with merchant bankers, the company has set the price band of Initial Public Offering at Rs 59-60 per share. This is 5.9-6 times the face value of its equity shares. Burger King’s IPO will close on December 4. Earlier, Burger King India had brought a rights issue of Rs 58.08 crore at a price of Rs 44 per share and a preferential allotment of Rs 91.92 crore per share of Rs 58.50.
The IPO will have a fresh issue of shares worth Rs 450 crore and 6 crore equity shares will be put up for sale by Burger King promoter company QSR Asia Pte Ltd. These 6 crore equity shares are worth Rs 360 crore at the upper end of the price band. Burger King India aims to raise Rs 810 crore from the IPO. The company will use this fund to open new restaurants and for the repair or prepayment of loans.
Bid to be placed for minimum 250 shares
The bids can be made for a minimum of 250 shares and thereafter in multiply of 250 equity shares. This means that retail investors can apply for maximum 3250 equity shares at higher price banked.
Reserve portion of IPO
Burger King India reserves up to 10% of the IPO for retail investors, while the maximum 15% of the IPO is reserved for non-institutional investors and 75% for qualified institutional investors. Kotak is the lead manager of Mahindra Capital Company, CLSA India, Edelweiss Financial Services and JM Financial IPO.